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Should regulators have created a public exchange for CDS?
Issue
1
#7032
Should the regulators have created a public exchange for credit default swaps to bring transparency and open trading to the market?
CONTEXT
(Help)
-
The Global Financial Crisis »
The Global Financial Crisis
The Global Financial Crisis☜Exploring the causes, consequences and responses to the global financial crisis. ☜F1CEB7
▲
Immediate triggers of the financial crisis? »
Immediate triggers of the financial crisis?
Immediate triggers of the financial crisis?☜What were the immediate triggers of the current financial crisis?☜FFB597
▲
Pathology in the Credit Default Swaps market »
Pathology in the Credit Default Swaps market
Pathology in the Credit Default Swaps market☜Credit Default Swaps, which originated as legitimate finance instruments that acted as a kind of insurance (offsetting risk in return for a premium), morphed into something more akin to high stakes gambling.☜59C6EF
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CDS market complex, unregulated and secretive »
CDS market complex, unregulated and secretive
CDS market complex, unregulated and secretive☜The Credit Default Swaps market is unregulated, and in the absence of regulation the clients and counterparties remain closely guarded secrets.☜9FDEF6
▲
Absence of transparency means unknown liabilities and mistrust »
Absence of transparency means unknown liabilities and mistrust
Absence of transparency means unknown liabilities and mistrust☜The absence of transparency means that nobody knows the liabilities of others, and, when things starts to go wrong, nobody feels that they can trust any one else.☜9FDEF6
■
Should regulators have created a public exchange for CDS?
Should regulators have created a public exchange for CDS?☜Should the regulators have created a public exchange for credit default swaps to bring transparency and open trading to the market?☜FFB597
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Entered by:-
David Price
NodeID:
#7032
Node type:
Issue
Entry date (GMT):
10/7/2008 12:05:00 AM
Last edit date (GMT):
10/7/2008 12:05:00 AM
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